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  5. ZDC: Could you please comment on the latest results. [Zedcor Inc.]
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Q: Could you please comment on the latest results. Thanks
Rick
Asked by Rick on May 24, 2024
5i Research Answer:

EPS was ($0.01) and revenues of $6.13M beat estimates of $5.7M. Adjusted EBITDA was $1.9M, and its growth efforts in the US are progressing well, with 5% of Q1 revenues from the US. It raised $15M through equity in Q1 which will allow it to continue to grow in the US, build more MobileyeZ, and expand its offerings to other regions in the US. Its decrease in profits year-over-year were largely due to two of its largest customers wrapping up pipeline construction projects. For the remainder of the year, the company aims to continue growing its operations outside of Canada, manufacturing its components to reduce supply chain bottlenecks, and build new, innovative products based on customer demand. It is a small-cap name, and liquidity has been improving recently. We like its recent momentum, and overall, we would be OK slowly adding here, while acknowledging it is a small-cap with high risks.